You’d like to increase your positive impact on the environment, educational opportunity, poverty alleviation, or womens/childrens’ rights, and yet you don’t want to sacrifice your financial security.
There are other obstacles too — family dynamics, appreciated business or real estate assets, and tax considerations, – any of which could derail even the most well-intentioned investor.
Our impact wealth management service brings together financial planning, estate and income tax, philanthropy, and investment management. Because your money needs to fund your life’s personal, charitable, and educational expenditures, we begin by clearly articulating what your goals are, what they will cost, and when you’ll need money for them. Abacus’ goal-setting approach draws from the disciplines of psychology, life planning, and executive coaching, and guides you to arrive at your unique set of goals, which then become the cornerstone of the financial strategies we’ll recommend.
Allow us to show you how you can align your assets with your values, reduce taxes, and achieve the goals you have for yourself, your family, and the causes you care about.
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You want to achieve measurable social and environmental change without sacrificing your own financial security. Abacus has developed exercises and tools to help create your customized impact plan. Some of the questions we address are:
- Do you want your entire portfolio invested in Impact, or just a portion?
- Do you want to focus on one specific cause or spread your impact across multiple causes?
- Do you want to make a difference locally, domestically, or globally?
- When should you utilize investing to achieve positive change and when should you give philanthropically?
- How will you define success for your impact investments and your philanthropic grants?
Most charitable giving is reactive or even haphazard. With thoughtful questioning and education, we can help you:
- Clarify your charitable mission and approach and match it to your Impact investment strategy to avoid conflicts between your giving and your portfolio.
- Select the most appropriate vehicle (e.g. private foundation or donor-advised fund) and ensure compliance with your fiduciary responsibilities
- Create a long-term tax plan to choose the best years and the best assets for giving.
- Research and negotiate grants with charitable beneficiaries, establish governance criteria for your foundation, and create metrics to measure your effectiveness.
Early in our relationship, we will produce a detailed cash flow projection to determine what rate of return return your portfolio must earn and what liquidity it must provide, which are the guardrails to your financial plan. This process will ensure that we can maximize your impact while preserving your financial security.
Every investment has a social impact, whether it’s an “impact investment” or a traditional one. We’ll dig in to your existing portfolio to understand what impact your investments are having (both positive and negative), what their expected financial risks and returns are, and what opportunities exist for improving their social and financial attributes.
We’ve all heard stories about the family that had too many eggs in one basket, or lost everything in a lawsuit. Safety is where we make sure that you are protected from life’s most common risks. This can include hedging concentrated positions, reducing leverage, asset protection planning, and insurance needs analysis. Because we don’t sell products or earn commissions, our recommendations for life, disability and other types of insurance will be sized according to your needs, not your broker’s lifestyle.
Taxes are one of the biggest obstacles to transitioning a portfolio towards more impact. Even if we feel a moral obligation to pay our fair share, accelerating capital gains on a portfolio or paying more taxes than necessary from the sale of a highly-appreciated business or property could threaten your long-term security.
By engaging in strategic planning as early as possible, we’ll identify the opportunities to minimize or eliminate taxes whether you’re trying to:
- Transition your portfolio towards impact
- Transfer wealth or educational funding to future generations
- Sell a company or real property with significant capital gains
- Maximize your contribution to the causes you care most deeply about
Traditional estate plans often fail to capture the full range of possibilities available to an impact investor. When you die, your money will go to your heirs, to a charity, or to the government. Our process involves open-ended questions to help you decide how you want to divide your estate. If you’d prefer it go to your charitable causes (rather than the government programs that happen to be in favor the year you die) or would enjoy the process of giving your wealth away during life so you can see the impact of your grants, we can help you create a much more satisfying blueprint that your attorney can use to draft or update your estate plan.
Once we understand your goals and values (the first step), we develop your personalized roadmap. We always strive to take manageable steps to improve your financial life and impact. If we go too fast, you may burn out and stop improving. If we go too slowly, you may miss important opportunities. We’ll help you make sure that the most critical tasks are prioritized quickly and the less important tasks are scheduled in the future rather than forgotten altogether.
We then meet two to four times a year by phone, by video or in person (frequency and location are up to you) to ensure that all the critical actions are being taken, whether by you or by us. While Abacus has no investment asset minimums to become a client and offers financial planning services starting at $200 per month, our Impact Wealth Management group is highly specialized and is best-suited to clients with $10 to $100 million in net worth. Fill out the short form below to have one of our senior partners contact you to see how we might help